Ministers have promised inter-departmental cooperation and better promotion to open more markets to social enterprise.
Industry minister Alun Michael said the government will launch a new action plan this spring aimed at confirming the value of social enterprises, the term used to describe organisations whose activities benefit their local environment and community.
Michael said that the government will encourage its departments to work together and with local authority purchasers to remove barriers within the procurement process for such organisations.
The action plan will also create a recognised business model for social enterprises through publicly funded business support provided by regional development agencies.
The government's plan also includes a campaign to promote more entrepreneurship within the sector.
Ministers will work with Enterprise Insight, the National Council of Graduate Entrepreneurship and the Social Enterprise Coalition to raise awareness of social enterprise among new entrepreneurs and those looking to start up.
"The new action plan is about aiming for the next level of growth in social enterprise," Michael said
"It is important for the social enterprise sector to recognise and celebrate the need to make a profit to survive and grow, and demonstrate that social enterprise is truly entrepreneurial."
There are approximately 15,000 social enterprises in the UK with a combined turnover of £18bn. They contribute an overall £5bn to the economy each year.
